Financial literacy and its influence on young customers’ decision factors

• Main Authors: Bozena Fraczek, Monika Klimontowicz
• Format: Article
• Language: English
• Published: Universidade do Porto, Faculdade de Engenharia (FEUP) 2015-04-01
• Series: Journal of Innovation Management
• Subjects: financial literacy; financial education; young customers’ financial needs; financial behaviour.
• Online Access: https://journalsojs3.fe.up.pt/index.php/jim/article/view/264

Dynamic changes in economic environment, especially regarding financial markets, cause the necessity to develop financial skills of societies. Despite the large number of different initiative in this field, the financial education level around the world is rather low. This state is influenced by many factors and differs in particular target group of financial education. The paper focuses on the young people as the most important group for further development of societies. The purpose of the article is to verify the influence of financial knowledge and skills on financial decision factors. It presents the results of a pilot survey which was conducted at the turn of 2013 and 2014 in selected European countries combining descriptive theoretical and empirical methods. The survey assesses the level of young customers’ financial literacy, examines young customers’ decision factors and correlation between them and basic financial knowledge and skills.